Venture capital reform plans

Michel Barnier, the European commissioner for the internal market, will present proposals for new rules for venture- capital funds on Wednesday (7 December).

Barnier hopes that by making it easier for small and medium-sized enterprises to get access to venture-capital finance, they will create more jobs and be more likely to innovate, which in turn will stimulate growth.

Removing barriers

Officials say that the objective is to eliminate administrative and legal obstacles that hamper venture-capital funds and managers from operating across member states.

Giving SMEs access to finance was the first of the 12 priorities in an action plan that Barnier published in April with the aim of re-energising the single market.

The proposals are due to be announced in tandem with an action plan for improving SMEs’ access to capital markets.

Barnier will also announce plans for a system to support social investment funds.